Is your company’s cash flow suffering as a result of consistent errors in your Revenue Cycle Management’s Hospital Account Receivable processes? If that’s the case, then it’s because Some common issues plague many healthcare organizations and obstruct their financial health objectives and goals.
Accurate Hospital Account Receivable (AR) management can shift your company’s cash flow from low to high. So, to manage the Medical AR process smoothly, healthcare providers and organizations must jump right to the solutions and fix these common issues and errors.
Issue1: Insurance claim denial
This is one of the most predictable and widespread Hospital AR issues affecting the cash flow of a healthcare organization. According to various sources, the average denial rate for the healthcare industry ranges between 10% and 25% of all submitted claims.
According to a Medical Group Management Association (MGMA) report, the best healthcare organization should have a denial rate of no more than 4%. As a result, the significant missed opportunity to recover revenue owed to your organization or hospital can be resolved by making simple changes.
To avoid bad debt, your healthcare organization must collect all necessary billing and insurance information, as well as calculate the patient’s expected out-of-pocket costs, before providing the service. So, by verifying coverage, the patient understands the scenario and accepts responsibility.
Providing a comprehensive billing experience improves:
- The likelihood of payment
- Helps uphold an excellent affiliation with your patient
- Makes sure a positive billing experience
Issue2: unmotivated Employees
Every healthcare provider to administrative staff, every member of your organization must be enthusiastic about their work. They should contribute to the growth of your business to achieve your mission and objectives. If you are losing your accounting due to sluggish employees, you are losing it on both sides (salary and profit), and you can see the negative impact on your organization’s account.
The best solution is to outsource revenue cycle management and Hospital AR tasks to a reliable outsourcing partner. Who will work tirelessly on your desired requirements using cutting-edge technology and dedicated personnel.
Issue3: Inadequate Technology
This is a time of technological advancement. This entails providing effective electronic services to hospitals and other healthcare organizations. A faulty or outdated IT system can cause significant harm because if no one understands how to use it correctly (including hospital staff), costly errors are likely to occur.
Such systems are required to keep track of claims and payments. If that information isn’t handled correctly, a lot of untracked or incorrectly tracked funds end up being left behind or drifting through a computer network. Even having a good patient portal and electronic bill pay with easy patient access can make a big difference.
Having an effective computer system also necessitates that the healthcare organization has a team to monitor it and staff that is properly educated on how to use it.
Issue4: Bad debt
Rising bad debt is becoming the most common Hospital AR issue, while patient responsibility accounts for more than a quarter of the healthcare industry’s revenue. Previously, patient responsibility was only discussed at the time of service.
However, it is no longer sufficient to discuss patient responsibility only at the time of service. It is critical to collect payment throughout the revenue cycle to improve patient collections.
If you want to avoid bad debt, your healthcare organization must collect all necessary billing and insurance information. As well as calculate the patient’s expected out-of-pocket costs, before providing the service. So, by verifying coverage, the patient understands the scenario and accepts responsibility.
Hence to conclude, the healthcare industry is complex, and managing multiple tasks like the hospital AR at once is difficult. Today’s health organization, overall cost reduction and efficiency are among the top financial priorities.
If your organization is plagued by problems associated with shrinking revenue and rising expenses. Then you should reconsider outsourcing those problematic tasks to industry experts. It will also give you more bandwidth to focus on your expertise, which is ‘providing quality healthcare.’